The Beer Game Processes - Essay Example

Businesses exist in self-sustaining cycles. When the demand for a product changes the prices of other complimentary products some of which are useful in the manufacturing process changes as well thereby compounding the challenges facing a business, the supply of bottled water, for example, uses such products and services as plastic bottles, branding, and transportation among others. The nature of the product makes it susceptible to climatic conditions since they influence the demand thus compounding some of the supply challenges (SILK, 2006). The transportation cost for bottled water is likely to increase during warm water as the demand for the product increases regionally. This implies that demand increases even for the transporters a feature of the business that is likely to increase the cost of conducting business thereby increasing the price of the product.

Demand for bottled water increases during special occasions such as end-year parties, graduations, and sports among others. The demand for the product stays either constant or declines in the absence of such social gatherings. The impromptu arrangement of some of the social functions makes it challenging for the supplier to increase the quantity of the product during manufacture and to organize their transportation to the university in time. Additionally, most of such occasions last a day and attract an undetermined quantity of people. Such occasions as graduations and sports attract many people while some occasions such as seminars and class parties may not attract as many people. The periodic nature of the demand coupled with the unreliable size of the demand makes both manufacturing and transportation to the university more challenging (PRASCH, 2008).

It is more challenging to change the quantity of the product for a day and organize their transportation to the market. The sudden organization of some of the events makes it more difficult for the business to set up the necessary infrastructure to manufacture an increased volume and transport them to the market in time. The problem increases since the company must find a market for the excessive market should it increase its production yet the demand fails to meet the quantity of the supply. Such excessive production results in losses for the business (FISHER, 2007).

Graduation gowns on the other hand have a more determined market. The products are essential to the students at the end of every academic year as the students adorn them in their graduation ceremonies. This implies that the supplier has a specified amount of time to both manufacture and supply to the university, additionally; the supplier operates closely with the institution. The supplier of graduation gowns, therefore, has a determined market. However, the business just like any other faces numerous challenges most of which arise from the nature of the demand (BURROW & BOSILJEVAC, 2009). The products are for example relevant only during graduation. This implies that the supplier remains out of business during the rest of the academic days. The demand for the product stays minimal during the rest of the days but rises abruptly during graduation day. While the supplier has many days to ensure both the production and supply of the product, the drastic increase in demand of demand for the product compounds the logistical challenges.

The number of grandaunts fluctuates every academic year, this implies that the demand for graduation gowns changes annually compelling the supplier to obtain information on the number of students that influence the production. Any breakdown in the communication of the number of graduates affects the supplier’s ability to meet the market demand. The nature of the business demands close consultation between the supplier and the university. The supplier must, for example, know the thematic color of the different departments at the university and manufacture gowns that may fit any body size since the student's body sizes vary. The production of conflicting colors and undesirable gown sizes drastically shifts the demand for the products (BOWMAN & GATIGNON, 2010).

In retrospect, demand for products relies on several factors of consumption. The university is a small market, a supplier must therefore carry out extensive market research and obtain such valuable information as the school calendar, and the activities of the university since such factors affect the demand for the products supplied to the university. Any factor that affects the demand for the products directly compounds the production and logistical challenges a business faces (BALL & SEIDMAN, 2012).

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